Valero changing organizational chart at the top

By Vicki Vaughanvvaughan@express-news.net :
December 8, 2010

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Valero Energy Corp. CEO Bill Klesse on Tuesday announced key management changes to take effect Jan. 1 in the wake of the retirement of Rich Marcogliese, executive vice president and chief operating officer, who leaves the company Dec. 24.

In a memo to employees, Klesse said the changes are being made after working with Valero's board of directors and a leadership consulting firm.

“The last two years in particular have been very challenging,” Klesse said in Tuesday's memo, “but today we are in a solid financial position and profitable. As we look to the future, we want to be sure our management team continues to develop in order to best position our company for long-term success.”

Marcogliese's duties “are being split up among the top management group,” Valero spokesman Bill Day said. “They are being given those duties as a development opportunity for them to further increase their skills,” giving each the possibility of becoming the next CEO of Valero.

Valero has no mandated retirement age, and there is no timetable set for Klesse's retirement, Day said. Klesse, 64, was appointed CEO on Jan. 1, 2006. He also is chairman and president of Valero, one of the nation's largest refiners.

The coming changes call for Jean Bernier, now president of Valero's Ultramar unit in Canada, to move from Montreal to San Antonio to assume the role of executive vice president of corporate communications, information services and supply chain management.

Bernier will continue to be president of Ultramar, with responsibility for Canadian nonrefining operations, as well as Ultramar's overall financial performance.

Kim Bowers will continue as executive vice president and general counsel while assuming responsibility for certain safety and regulatory matters. Reporting to her will be Travis Capps, vice president, energy and gases; Eric Honeyman, vice president, process safety management and reliability; and Tony Jones, senior vice president, project execution.

Gene Edwards will serve as executive vice president and chief development officer. He will assume responsibility for the financial performance of Valero's refinery in Aruba “and any other international opportunities that arise,” Klesse's memo said.

Joe Gorder, now executive vice president of marketing and supply, will remain an executive vice president and will add a new title: chief commercial officer, adding supervision of Valero's retail operations to his responsibility for wholesale operations.

Reporting to Gorder will be Gary Arthur, president of Valero's retail division, and John Roach, senior vice president of strategic development and technology.

Lane Riggs, now senior vice president of crude, feedstock supply and trading, will become Valero's senior vice president of refining operations and will report directly to Klesse. All the company's refining operations, including its Quebec refinery, will be under Riggs' leadership, the memo said.

Loren Bates, vice president of refining business support and analysis, will report to Riggs.

Martin Parrish will take on Riggs' job as senior vice president of crude, feedstock supply and trading. He will report to Gorder.

Mike Ciskowski will continue as Valero's executive vice president and chief financial officer, Day said.